Innovative Solar Power Plant to Boost National Grid Launched at the Height of South African Energy Challenges

-- KaXu Solar One is the first Solar Thermal Electric power plant in commercial operation in South Africa. -- This public-private partnership helps meet the energy needs of South Africa in a reliable and sustainable manner using innovative technology.


WASHINGTON, March 2, 2015 -- Abengoa (MCE: ABG.B/P SM)
(Nasdaq:ABGB), the international company that applies innovative technology
solutions for sustainability in the energy and environmental sectors, and
state-owned financier, the Industrial Development Corporation (IDC),
together with KaXu Community Trust have launched a
100 MW solar plant near the town of Pofadder (Northern Cape Province),
capable of providing clean and sustainable power to approximately
80,000 homes in South Africa.

Minister of Economic Development, Mr Ebrahim Patel, officially inaugurated
this innovative solar power plant. He was accompanied by Deputy Minister of
Public Enterprises, Mr. Bulelani Magwanishe, Premier of the Northern Cape,
Silvia Lucas, executives of Abengoa and IDC and representatives of the local
community.

KaXu Solar One, the first Solar Thermal Electricity (STE) power plant in
South Africa, incorporates a storage system that enables production of 100
MW for 2.5 hours after sunset or before dawn. The project will result in
approximately USD 891 million direct and indirect investment inflows to
South Africa, generate approximately USD 516 million in taxes over the next
20 years, and created 1,000 construction jobs during its three-year
construction period.

This project, a well arranged public-private partnership, was awarded by the
Department of Energy of South Africa and it will serve clean and reliable
electricity to Eskom, South Africa's power utility, under a 20-year power
purchase agreement. Abengoa owns 51 % of the project, the IDC 29 % and KaXu
Community Trust 20 %.

Manuel Sanchez Ortega, Vice President and CEO of Abengoa, has stated:
"We are proud of the role we are playing to help South Africa meet its
ongoing energy demands. This project will leave a legacy that will benefit
the community of Pofadder, Northern Cape and the entire country. This would
not have been possible without the leadership of the South African
Department of Energy."

IDC chief executive, Geoffrey Qhena, has declared: "The project is based on
a strong public-private sector partnership and forms part of our efforts to
support Government's initiatives to introduce alternative sources of energy
into the country's energy mix as contemplated in the integrated resources
plan."

Fadiel Farao, the Chairperson of the KaXu Community Trust, says KaXu Solar
One will be a catalyst for economic development in the Khai Ma municipality
in the Northern Cape. "The project has stimulated the local economy and will
go a long way toward helping to generate much-needed economic opportunities
for people in this area." KaXu Community Trust is made up of members of the
local community.

Abengoa is building in the region Khi Solar One, a 50MW solar plant using
tower technology and has already started the construction of a third
project, Xina Solar One, a 100 MW parabolic trough plant. Xina Solar One
will shape with KaXu Solar One the largest solar platform in sub-Saharan
Africa.

About Abengoa
Abengoa (MCE: ABG.B/P SM) (Nasdaq:ABGB) applies innovative technology
solutions for sustainability in the energy and environment sectors,
generating electricity from renewable resources, converting biomass into
biofuels and producing drinking water from sea water.
www.abengoa.com

About IDC
Established in 1940, Industrial Development Corporation (IDC) is a national
development finance institution set up to promote economic growth and
industrial development. They are owned by the South African government under
the supervision of the Economic Development department. Their primary
objectives are to contribute to the creation of balanced, sustainable
economic growth in South Africa and on the rest of the continent. IDC
promotes entrepreneurship through the building of competitive industries and
enterprises based on sound business principles. www.idc.co.za

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